I am developing an application in Flash and am using a few system (?) fonts like Verdana & Tahoma. The application will use the fonts for static text display, dynamic text display & user input and it will be deployed on a web server to be accessed mainly by users in the US on Windows & Macintosh systems. I wanted to have a few special characters added to the font and so checked with one of the vendors of these fonts and he told me that if I'm using the font for text display (static & dynamic) its fine, but cannot use it for text input as that would violate the IPR/EULA of these two font.
Any ideas on where does this lead to? And what could be possible next steps?
Verdana and Tahoma have an EULA? Thats news to me, as I never agreed to one, and they were included with the operating system of my computer.
As I do some quick research I discover that Verdana is a Microsoft-owned font, and the EULA limits you in almost no way. here is the EULA (It covers all of the Microsoft-owned true-type fonts, as I understand it): http://www.microsoft.com/typography/fontpack/eula.htm
On top of that, whoever you contacted lied to you about the specific fonts you mention.
This FAQ on Microsofts website details what the various permissions mean: http://www.microsoft.com/typography/RedistributionFAQ.mspx
If you download the tool described on this site, you can view the detailed permissions of any font in your library: http://www.microsoft.com/typography/TrueTypeProperty21.mspx
I downloaded the tool, and checked out Tahoma and Verdana.
Tahoma is "Editable Embedding" or, via the FAQ: "'Editable' fonts can be embedded within content that can be edited by the user."
Verdana is "Installable Embedding" or, via the FAQ: "'Installable' fonts within a document may be permanently installed by the user reading the document or a client application. In practice, installable fonts are treated like editable fonts by most client applications."
So, you can do whatever you need with these two fonts.